RESOLUTION NO. 5068-2021
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF BARSTOW APPROVING PARTICIPATION IN NATIONAL
OPIOID SETTLEMENT AGREEMENT AND AUTHORIZING THE CITY
ATTORNEY AND/OR CITY MANAGER TO EXCECUTE THE RELATED
PARTICIPATION AGREEMENT
WHEREAS, a settlement has been reached in multi-district litigation in Ohio brought by states and cities against the three largest opioid distributors-McKesson, Cardinal Health and Amerisource Bergen — and the opioid manufacturer Janssen (owned by Johnson & Johnson); and
WHEREAS, the proposed settlement (Settlement) consists of an agreement with the opioid distributors and an agreement with Janssen; and WHEREAS, under the terms of the Settlement $21 billion will be paid by the opioid distributors over an 18-year period and Janssen will pay $5 billion over a 7-year period to states, cities, and counties; and
WHEREAS, under the terms of Settlement, California is scheduled to receive approximately somewhere between $2.269 and $2.34 billion, some of which will be distributed to cities and counties; and
WHEREAS, under the terms of Settlement, the County of San Bernardino estimates that it will receive $52 million over 18 year and that the City of Barstow will receive $240,255 over 18 years; and
WHEREAS, although the City is not a litigating entity involved in this litigation it may opt-in and receive the benefits of the Settlement in exchange for releasing its claims against the opioid distributors and Janssen; and
WHEREAS, the more cities with populations greater than 10,000 people, such as the City, which opt-in to the agreement will enable their respective counties and states to receive more funds under the incentive structure of the Settlement; and WHEREAS, opting-in to the settlement will enable to the City receive funds from the Settlement, which can be used to treat opioid use disorder and for other purposes; WHEREAS, the City wishes to agree to the material terms of the proposed Settlement; and
WHEREAS, jurisdictions must opt-in to the Settlement before January 2, 2022.
City Council Resolution No. 5068-2021 1
NOW THEREFORE, the City Council of the City of Barstow hereby resolves as follows:
SECTION 1. Recitals:
The City Council finds that all the facts, findings, and conclusions set forth above in this Resolution are true and correct.
SECTION 2. Approval of Participation in National Opioid Settlement:
The City Council finds that the City Attorney and/or the City Manager is authorized to ace city or Barstsed setlements with the opioid distributors and with Jansen on behal SECTION 3. Severability Clause:
Should any section, clause, or provision of this Resolution be declared by the Courts to be invalid, the same shall not affect the validity of the Resolution as a whole, or parts thereof, other than the part so declared to be invalid.
SECTION 4. Certification:
The City Clerk shall certify to the passage and adoption of this Resolution and shall cause the same to be published or posted according to law.
PASSED, APPROVED AND ADOPTED this 15t" day of November, 2021. aul Anthony Courtney, Dr.B.A, Mayo
ATTEST:
star
Andrea Flores, City Clerk
SEPT 10: 2
*BARSTO
City Council Resolution No. 5068-2021 2
1, Andrea Flores, City Clerk of the City of Barstow and ex-officio Clerk of the City Council DO HEREBY CERTIFY UNDER PENALTY OF PERJURY that the foregoing is a true and correct copy of Resolution No. 5068-2021, was adopted by said City Council at a regular meeting held on the 15" day of November, 2021 by the following vote:
AYES: COUNCIL MEMBER KRUSE, ROSE, SILVA, MAYOR PRO
TEM NOBLE, AND MAYOR COURTNEY.
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Andrea Flores, City Clerk
City Council Resolution No. 5068-2021 3
11/29/21, 10:04 AM Consideration of Resolution No. 5068-2021 Approving Participation in National Opioid Settlement Agreement and Authorizing t...
City of Barstow Approved
California Nov 15, 20217:00 PM
FOBARS OW
CROSLOADI OF ORFORTUMITYI
Agenda Item
4857
Consideration of Resolution No. 5068-2021 Approving Participation in National Opioid Settlement Agreement and Authorizing the City Attorney And/Or City Manager to Execute the Related Participation Agreement.
Information
Department: City Manager Department Sponsors:
Category: Resolution
Attachments
Printout
Reso approving National Opiod Settlement
(Upload New Attachment)
Fiscal Impact
There are no fiscal impacts at this time. If the City decides to opt-in to the settlement, it will receive an estimated $240,255 over 18 years. The City will have to abide by reporting requirements on how these funds are spent, which may use staff time.
Executive Summary
Staff recommends that the City Council consider adoption of Resolution No. 5068-2021, approving a Resolution authorizing participation in National Opioid Settlement and authorizing the City Attorney and/or City Manager to execute the related participation agreement.
Discussion
A settlement has been reached in multi-district federal litigation against opioid manufactures and distributors. The settlement arose out of litigation brought in Ohio by states and cities against the three largest pharmaceutical distributors- McKesson, Cardinal Health and Amerisource Bergen - and the opioid manufacturer Janssen (owned by Johnson & Johnson). The 3,800 litigants contended that the distributors and Janssen contributed to the national opioid crisis by ignoring signs of opioid addiction and overselling opioids.
The proposed settlement is worth $26 billion and will cover all states, counties, and cities - even those who are not part of the litigation. The opioid distributors will pay $21 billion over an 18-year period and Janssen will pay $5 billion over a 7- year period. Under the terms of settlement, California is scheduled to receive approximately somewhere between $2.269 and $2.34 billion.
Jurisdictions must affirmatively opt-in to the settlement before January 2, 2022 to receive funds from the settlement.
According to the County of San Bernardino, the City will receive an estimated $240,255 over 18 years if it opts-in to the settlement.
If the City opts-in to the settlement, it must release its claims against the opioid distributors and manufacturers participating in the settlement. In exchange, the City will receive funds, which can use to combat opioid abuse in the City and for other purposes. Under the terms of the settlement, the City would have to report how it spends funds received from the settlement.
By not acting, the City will not be a participant in the settlement. One advantage of not opting-in to the settlement is that the City would retain the ability to pursue its own litigation against opioid distributors and manufacturers. If the City does not opt-in, then funds to be received by the City under the settlement would instead go directly to the State. barstowcityca.iqm2.com/Citizens/Detail_LegiFile.aspx?Meeting|D=2604&MediaPosition=&ID=4857&CssClass=&Print=Yes 1/2 11/29/21, 10:04 AM Consideration of Resolution No. 5068-2021 Approving Participation in National Opioid Settlement Agreement and Authorizing t...
Recommended Action
Staff recommends that the City Council approve Resolution No. 5068-2021 and authorizing the City Attorney and/or City Manager to execute the related participation agreement.
Meeting History
City Regular Meeting & Draft
Nov 15, 2021 7:00 PM Video
Council
RESULT: APPROVED [UNANIMOUS]
MOVER: Barbara Mae Rose, Council Member
SECONDER: Marilyn Dyer Kruse, Council Member
AYES: James M. Noble, Marilyn Dyer Kruse, Barbara Mae Rose, Paul Anthony Courtney, Timothy Silva barstowcityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=2604&MediaPosition=&ID=4857&CssClass=&Print=Yes 2/2